Final answer:
The question is based on calculating the required return on equity for Air Tampa with a new tax rate. However, important parameters necessary for the calculation, such as the cost of debt, the amount of equity, and the return on assets, are not provided in the information. Therefore, it is impossible to accurately answer the question or choose one of the provided multiple-choice options given the data present.
Step-by-step explanation:
To calculate Air Tampa's required return on equity using the new tax rate, we will use the provided hint that the value of the unleveled firm (VU) drops to $12.1875 million. Unfortunately, based on the given information, the data provided does not allow us to calculate the required return on equity directly. Moreover, some necessary parameters such as the cost of debt, the equity amount, and the return on assets are missing. These parameters are critical in applying formulas like the Modigliani-Miller Proposition II (with taxes) or other relevant financial formulas to determine the required return on equity.
We would typically calculate the levered value of the firm (VL) using the tax shield benefit from the debt, then derive the return on equity considering the increased risk associated with leveraging. The formula could look like something similar to Re = Ru + (Ru - Rd)(D/E)(1-Tc), where Re is the required return on equity, Ru is the required return on unleveled equity, Rd is the cost of debt, D/E is the debt-to-equity ratio, and Tc is the corporate tax rate. Without further information, we're unable to proceed with an accurate calculation.